TLDR
- S&P 500 and Nasdaq 100 futures rose Wednesday after Tuesday’s selloff, which followed a hotter-than-expected inflation reading.
- CoreWeave jumped 13% premarket after third-quarter revenue of $3.66 billion beat estimates and full-year guidance was raised.
- Nvidia gained 5.2% premarket, even as investors watch news about CEO Jensen Huang.
- Costco declared a $30 per share special dividend and reauthorized a $4 billion buyback.
- Rigetti Computing fell after posting a wider loss and $1.4 million in revenue.
Stock futures climbed on Wednesday as investors bought shares after a rough prior session. S&P 500 and Nasdaq 100 futures were both higher. Tuesday’s drop followed an inflation report that came in hotter than expected.
Several artificial intelligence names led the early gains. Chip makers, data storage firms and server makers all traded higher before the opening bell. Here is how the biggest movers looked.
AI Stocks Lead the Premarket Rebound
Nvidia rose 5.2% in premarket trading. The chip maker gained as the AI rally continued. Investors are also following news about CEO Jensen Huang, who admitted to an affair with a woman accused of spying for China.
CoreWeave jumped 13% in premarket trading. The AI cloud provider reported third-quarter revenue of $3.66 billion, up 168% from a year earlier. Analysts polled by LSEG had expected $3.55 billion.
CoreWeave also raised its full-year revenue outlook. Shares first rose in after-hours trading on Tuesday, then dipped, before climbing again overnight. The stock had been under pressure on worries about a slowdown in AI data center building.
The company’s bond yields had also been rising. CEO Michael Intrator said CoreWeave will stop using unsecured public debt. It will rely on delayed-draw facilities, which it has used before.
Other AI-linked stocks also rose early. Sandisk, Lumentum, Coherent, Dell, Bloom Energy, Seagate, Marvell and Super Micro Computer were among the best performers in the S&P 500 before the open.
Costco, Rigetti and Other Earnings Moves
Costco Wholesale slipped 0.1% in premarket trading. The warehouse chain declared a special dividend of $30 a share. That is double its previous special payout.
Costco’s board also reauthorized a $4 billion stock buyback program. The company did not change its share count plans beyond that.
Rigetti Computing fell 0.9% in premarket trading after dropping more than 6% in after-hours trading on Tuesday. The quantum computing company lost 8 cents a share. Analysts had expected a loss of 5 cents.
Rigetti’s third-quarter revenue was $1.4 million, well below the $3.5 million forecast. The company expects about $20 million in revenue for the full year. Analysts had expected $22.6 million.
CEO Subodh Kulkarni told Barron’s that investors “need to be a little patient.” Other companies also moved after reporting results on Tuesday.
Mercury Systems fell almost 3% after hours, even though it beat estimates. It earned 52 cents a share on revenue of $253.2 million. Analysts expected a high of 33 cents and $246.2 million.
Grocery Outlet fell 8% after mixed third-quarter results. Revenue was $1.18 billion, just above the $1.17 billion estimate. Adjusted earnings of 16 cents a share matched forecasts.
NextNav rose about 9% after hours. Its quarterly loss narrowed to 4 cents a share from 12 cents a year earlier. Cash and short-term investments rose to $264.1 million as of Sept. 30.
Firefly Aerospace slipped 2% after narrowing its full-year revenue guidance to $440 million to $450 million. Its earlier range was $420 million to $450 million. The consensus estimate was $439.4 million.
